- Solana (SOL) has successfully recovered from the FTX crash in November 2022, marking a new yearly high at $32.81.
- Despite the current bullish momentum, a potential reversal could happen if SOL fails to sustain above the $28 support level, with risks of a sharp decline.
Solana’s Remarkable Comeback: A New Yearly High in Sight
Solana (SOL), a prominent player in the blockchain space, has witnessed a significant price surge in October, culminating in a new yearly high of $32.81. This surge is particularly noteworthy as it marks a full recovery from the FTX-induced crash witnessed in November 2022.
A Stellar Performance: SOL Breaks Barriers
The performance of Solana has not gone unnoticed, as it broke past the crucial $28 horizontal resistance, setting the stage for potential further gains. The Relative Strength Index (RSI), a tool used by traders to gauge the momentum and potential reversal points of an asset, has hit its highest point since November 2021, indicating strong bullish momentum.
Tracing back to November 2022, SOL experienced a sharp decline, plummeting from $31.72 to $12.34 within a span of two days, a repercussion of the FTX exchange declaring bankruptcy. Fast forward to the present, SOL has managed to retrace this entire drop, showcasing the resilience and strong buying interest in the asset.
Adding to this bullish narrative, Solana’s trading volume has spiked to $1.7 billion, a peak not seen in the last three months. Concurrently, the Total Value Locked (TVL) on the Solana blockchain has hit a new yearly high of $367 million. While this is a notable achievement, it’s worth mentioning that this figure is still just 3% of its all-time high of $10 billion recorded in November 2021.
Analysts Weigh In: Bullish Sentiments Prevail
Prominent cryptocurrency traders and analysts have shared their bullish sentiments, projecting further gains for SOL. Pentosh1 anticipates a rise towards $37, contingent on a breakout above the midrange of $32. On the other hand, SatoshiWolf also has a bullish outlook but suggests the $37 area as a strategic point to take profits, given the numerous resistances at this level.
Solana Price Prediction: Sustainability is Key
The weekly timeframe paints a bullish picture for SOL, with a decisive close above the $28 resistance, marking the highest close since the FTX crash. The RSI on this timeframe is trending upwards, currently sitting at 65, its highest point since November 2021, signaling sustained bullish momentum.
If the uptrend persists, the next resistance area to watch is at $46, representing a potential 45% increase from the current price. However, it is crucial for traders to remain vigilant. A weekly close below the $28 level could invalidate the bullish breakout, potentially triggering a sharp 40% drop to the $20 support line.
